Chapter 24 Flashcards
define globalization
the growth of international commerce and communications that makes national boundaries less important
what is a country’s balance of trade?
the relationship between the vakues of its imports and exports
define free trade
a gevernments policy of allowing goods to flow in and out of its economy
define protectionism
the opposite of free trade and includes many government imposed trade restraints
define transshipping
rerouting of goods to evade quota limits
define dumping
the selling of goods at lower prices in offshore markets than in home markets
What is the World Trade Organization
an international trade agreement that reduces tariffs, quotas and other trade barriers
What is structural adjustment
the process of industries and economics adapting to long term shifts
what is a comparative advantage
the ability of one nation to produce certain goods or services better due to circumstances
Companies should learn about a country’s…
- political stability
- economic climate
- infrastructure
- culture
define joint ventures
agreements that bring necessary skills or products of two companies together
